Loans

Loans are borrowed funds which must be repaid. To meet the Cost of Attendance, many students and parents find that loans are an important resource for financing education expenses. There are no pre-payment penalties on these loans. There are three basic loan categories: Federal, Institutional, and Private/Alternative Loans.

Federal Loans

Federal Perkins Loan

The Perkins Loan (PERL) is a need-based, long-term, low interest (5%) loan. There are no processing fees. Funds are limited and availability is based on repayments from prior borrowers. Interest does not accrue and there is no repayment while you remain enrolled at least half-time. Repayment begins nine months following graduation, withdrawal, or enrollment less than half-time. The standard repayment term is ten years. The Perkins Loan has certain cancellation/discharge provisions, read the U.S. Department of Education’s “The Guide to Federal Student Aid” at www.federalstudentaid.ed.gov. The Cashier’s Office will mail the appropriate paperwork for the Perkins Loan in July or if awarded after July, within two weeks of offer.

Nursing Student Loan

The Nursing Loan (NSL) is a need-based, long-term, low interest (5%) federal loan specifically for students admitted into the Orvis School of Nursing. There are no processing fees. Interest does not accrue and there is no repayment while you remain enrolled at least half-time. Repayment begins nine months following graduation, withdrawal, or enrollment less than half-time. The standard repayment term is ten years. The Cashier’s Office will mail the appropriate paperwork for the Nursing Loan in July or if awarded after July, within two weeks of offer.

Institutional Loans

Garvey-Rhodes and Blundell Undergraduate Loans

Garvey-Rhodes (GRLN) and Blundell Undergraduate (BLUN) are need-based loans for undergraduates funded from institutional endowments. Both offer low interest (5%), long-term loans. There are no processing fees. You must be and remain full-time during the award year. Interest does not accrue and there is no repayment while you remain enrolled at least half-time. Repayment begins six months after graduation, withdrawal, or enrollment less than half-time. Repayment is not deferred if you enroll at another college. The Cashier’s Office will mail the appropriate paperwork for the Garvey-Rhodes or Blundell Loan in July or if awarded after July, within two weeks of offer.

University Loan

This is an institutional, short-term loan designed to assist continuing students who have cash flow issues. A co-signer is required and a processing fee of 2% of the loan is collected at the time the application is submitted. Ten percent (10%) interest accrues from the date of approval. 1/2 of the balance is due in 6 months and the balance of the loan at the end of 12 months or sooner if you graduate. If financial aid is received, the loan is due and payable in full at that time. This loan, in combination with other financial aid or scholarships, may not exceed the student budget.

Private and Alternative Loans

A private/alternative loan (BALP) is a consumer-based, non-need-based loan. The interest rate for an alternative loan is usually considerably higher than the rate for a federal loan. You should compare the terms, interest rates and fees carefully before borrowing an alternative loan.